DAILY MARKET REPORT - Wed, June 24, 2020


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US plan to impose new tariffs on $3.1 billion of exports from the EU and UK. United States Trade Representative revealed on Wednesday the Trump administration may impose new tariffs on goods coming from the European Union and the United Kingdom. The new tariffs include on European exports like olives, beer, gin and trucks, while also increasing duties on other products including aircraft, cheese, and yoghurt.


European and UK stocks fall on Wednesday after the new tariff news and Asian stocks end lower after White House economic official Larry Kudlow said that the U.S. trade deal with China was not only fully intact. On Tuesday, Wall Street closed higher the Dow Jones gained 131 points to 26,156. The S&P 500 climbed 13 points to 3131.


Crude oil prices edge lower after API data showed US crude stockpiles rose by a higher-than-expected 1.7 million barrels in the latest week.


The New Zealand dollar remains weak on Wednesday after negative comments from RBNZ. While the US dollar rebounded from 2- week low supported by better-than-expected economic data.


The yellow metal climbed to a fresh high on Wednesday and trading highest level since Oct-2012 as investors turned to safe-havens amid concerns over the second wave of coronavirus infections.

Economic Outlook

On the data front, the German IFO survey showed a further improvement in the Business Climate, this time climbing to 86.2 in June (from 79.7). On Tuesday, US New home sales saw a fresh jump, rising 676k over the month. Meantime, PM Johnson announced that cinemas, museums, bars and restaurants will reopen starting July 4th and that the two-meter social distancing rule will be reduced to 1 meter.

During the Asian session, the Reserve Bank of New Zealand (RBNZ) left interest rates unchanged at a record low level of 0.25% and its QE program steady at N$60 billion. The central bank committee agreed that the June quarter data will show a substantial decline in economic activity as the severe global economic disruption caused by the COVID-19 pandemic.

Coronavirus Update:

The number of people infected with the coronavirus across the world rose towards 9.3 million, of which around 470 thousand have died. On Tuesday, Canada announced 326 new cases of the novel coronavirus, including 18 deaths. WHO Director-General Tedros Adhanom Ghebreyesus said it took more than three months for the world to see 1 million confirmed infections, but just eight days to see the most recent 1 million cases.

Technical Outlook

Gold price trading steady above $1770 on Wednesday, the next important level to watch $1800.


The important levels to watch for today: Support- $1764 and $1750 Resistance- $1780 and $1800.

EUR/USD: The pair dropped to a new session low of 1.1270 during the European session after the new tariff news from the white house.


The important levels to watch for today: Support- 1.1270 and 1.1240 Resistance- 1.1320 and 1.1360.

Quote of the day: The goal of a successful trader is to make the best trades, money is secondary- Alexander Elder.

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